Tolbert: RGA Hits Ross On Pharmacy Sale

A new ad from the Republican Governor’s Association re-circulates an old story on Mike Ross related to the 2007 sale of his pharmacy in Prescott.

The ad continues an investment from the RGA that they plan to target the Arkansas race and will make it a priority in 2014.

The ad (seen below) is based largely on a story first reported by Pro Publica in 2009 during the heat of the health care debate.  The report alleges that Ross unfairly received more than the typical fair value for the sale of the pharmacy.

“Congressman Mike Ross has a history of making sweetheart deals, including this instance where he sold his family pharmacy for far more than it was worth,” said RGA Communications Director Gail Gitcho. “Given the chance to pad his own pockets, Ross cashed in. Unfortunately for Mike Ross, he’s a typical politician, and that’s not what Arkansas wants in its next governor.”

“Comprehensive reviews from the Arkansas Democrat Gazette found the sale of our family pharmacy ‘very average’ and they called the attack nothing more than a ‘smear.’ The bipartisan House Ethics Committee dismissed these partisan allegations, said my wife and I handled the sale ‘appropriately’ and then closed the matter completely,” said Ross in a statement from his campaign. “This ad — that doesn’t even pronounce the name of my hometown correctly — attacks my wife, my family business and every small town and family-owned small business in Arkansas. If Congressman Hutchinson has even an ounce of ethics and integrity, he will join our campaign in calling on the RGA to immediately pull this slanderous ad from the airwaves and apologize.”

A lot of the discussion regarding the sale of this property died down shortly after the 2009 Pro Publica story. Quite frankly, it is difficult to analyze the value of such a sale without having all the information that the buyers and sellers in the transaction had.  Much of the Pro Publica analysis was based on appraised values of the assets of the business. While obviously this is important, sellers are often more interested the cash flow the business is producing and the intangible goodwill from a local established business.

It remains to be seen if this story will raise any new questions regarding the sale, but it appears clear that the RGA is not shying away from making this an issue.